Denmark's Auditor and Yearly Financial Summaries

In Denmark, it is possible for a company owner to opt-out of having an audit after the company is established. This can be done by providing the necessary information in the incorporation document and choosing to waive the obligation to have an audit (also known as "fravælge revisionspligt").

For ApS and IVS companies with limited liability, meeting two out of three recommended requirements exempts them from mandatory auditing:

  1. The company should have an average of 12 full-time employees during a given fiscal year.
  2. The total amount of debts or assets on the balance sheet should not exceed DKK 4 million.
  3. The net turnover, excluding VAT, should not surpass DKK 8 million per year.

Holding companies possess a significant portion of shares in other businesses, usually around 20% ownership. To avoid an audit, this type of Danish business must also fulfill the same requirements as limited liability companies, namely turnover not exceeding DKK 8 million, maintaining a balance of DKK 4 million, and employing at least 12 full-time employees. However, these conditions apply to all companies in which the holding company has shares, so the values must be combined.

If a limited liability company was established many years ago and had been subject to an annual audit, it can be deregistered during the annual shareholders’ meeting. This can be accomplished by recording relevant information in the minutes, amending the Articles of Association to remove anything pertaining to the audit, and noting in the company’s annual report at the end of the year that the conditions for not being audited have been approved.

On the other hand, no audit has been necessary for Danish sole proprietorships since 2006.

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